Archives for 2012

Non Performing Note Buyer for Second Mortgage Liens

It's difficult to find note buyers for junior liens but that is especially true for non-performing second position mortgage notes. We were recently informed of an investor hungry for this type of real estate paper and wanted to share a new addition and update to the real estate note buyer directory. What type of real estate notes will your investors consider buying? The junior lien note buyers I am working with are looking for the following: 2nd position notes nationwide 1st are … [Read more...]

Buying Mortgage Notes? Sometimes It’s The Little Things!

If you are buying mortgage notes from banks or private sellers then you know sometimes those small pesky details can turn into big trouble. Recently a reader shared one of his note buyer stories of a "good deal gone bad." He was kind enough to let me share his story in hopes of saving others from a similar situation. After you read his story please head over to What Private Note Buyers Can Learn from MERS for tips on safeguarding against this challenging situation. Buying Mortgage Notes … [Read more...]

Should I Carry Back An Owner Financed Note?

If you are selling real estate, especially in this market, you might be approached by someone asking if you are willing to “Owner Finance” or consider a "Seller Carry-Back" note. Here are a few guidelines to consider... How Do You Make Money When Owner Financing? The whole concept behind seller financing is that you are acting like the bank. While that carries risk of receiving payment, you can also get a great return on your money. I tend to recommend that if you are going to carry back … [Read more...]

Is For Sale By Owner The Best Place to Find Notes?

One of the most common items new note brokers run into is they start seeing the “For Sale By Owner” or FSBO signs pop up around them. Granted, those signs have always been popping up, but now that you are in the note business you begin to see some additional opportunities. But are they good opportunities? The existence of a “For Sale By Owner” sign does not necessarily equal a potential cash flow note deal. If anything, it may be a distraction. Let me explain. 1.  “For Sale By Owner” … [Read more...]

One of Our Favorite Note Buyer Purchases

One of the best investments we made as a note buyer happened a bit by accident. In 2008, we were contacted by a potential seller of a real estate note secured by productive farmland. He wanted to sell payments from his note to pay off his credit card debt. The details were roughly as follows: … [Read more...]

Do Some Investors Pay Par Pricing When Buying Mortgage Notes?

Recently we received a question in the Finding Cash Flow Notes training course related to “par pricing” or "discount" when buying mortgage notes. First off, here is the Note Broker Question… Hello and thank you two for all your help. My question is why would a note investor pay par for a note? I’ve been speaking with a person who helps their clients use OWC (Owner Will Carry). I was informed they are working with a note investor that is willing to buy a note for par. I don’t understand … [Read more...]

Buying and Selling Notes for Residual Income

Here's one reason to love real estate notes... surprise payoffs! For years we have been talking about the benefits of keeping some payments as residual income when buying, selling, or brokering notes. This is not just theory - it really works. Need proof? Just last month we were fortunate enough to get one of those surprise payoff checks for $57,569.28!  And that was on a note we sold back in May of 2000. Now before you start thinking this is some sort of easy overnight riches please … [Read more...]

Will 2012 Be The Year For Real Estate Notes?

To understand the current market for real estate notes it helps to go back in time. Years ago the country was in a financial crisis. Gas was expensive. There were numerous political battles in Washington, DC. Houses were not selling. Interest rates were high. Wait…what? … [Read more...]

Charging Late Fees on Notes

Successfully owning or buying cash flow notes requires a solid plan for collecting and servicing the payments.  But what happens when the note payments are late?  John Moren, a 25+ year veteran of the note business, explains the issues with charging late fees on notes.  In speaking with our NoteSmith loan servicing software users, I sense a lot of confusion and unnecessary creativity concerning late fees around the country. Here are some issues we have seen over the last few … [Read more...]